(a) Establishment of City Medical Escrow Fund.
(1) There is hereby established a certain medical plan self-insurance cumulative non- reverting fund to be used for the accumulation of a reserve of monies consisting of employee and employer premiums and all anticipated investment revenues from those premiums, for the purpose of payment of said comprehensive medical benefits and administrative costs for the qualified employees of the City and qualified employees of the Carmel-Clay Parks Board. A copy of the master medical plan and all subsequent amendments are to be filed in the office of the Controller.
(2) The fund shall be known as the City Medical Escrow Fund.
(3) Said fund will include accrued dollars of employee and employer premiums, paid to date, in the self- insurance program as the initial deposit to the City Medical Escrow Fund with all future employer/employee premiums and investment revenues from those premiums to be added to said fund. (Ord. D-1048, § 1, 2-21-94)
(b) Withdrawals from City Medical Escrow Fund.
(1) It is hereby established that $100,000 (the “Account”) will be paid by the Controller from the City Medical Escrow Fund to the third party administrator designated by the City by and through the Board of Public Works and Safety, hereinafter referred to as the “Plan Supervisor.” The Account is to be used by the Plan Supervisor for insurance claims paid according to the Plan and claims submitted by the Plan Supervisor for administrative costs which are determined by contractual stipulations between the City and the Plan Supervisor. (Ord. D-1269, 1-27-97)
(2) The Controller is hereby authorized to withdraw funds monthly from the City Medical Escrow Fund in an amount totaling the claims submitted by the Plan Supervisor for insurance claims paid according to the Plan and claims submitted by the Plan Supervisor for administrative costs.
(3) With the exception of withdrawals for investment purposes by the Controller, all other distributions from the City Medical Escrow Fund must be approved by the Carmel Board of Public Works and Safety hereinafter referred to as the “Plan Administrator.” (Ord. D-1048, § 2, 2-21-94)
(c) Validation of claims. It is hereby established that the Plan Administrator shall direct a designee to review claims on a monthly basis. In the event it will be necessary to secure credit from the Plan Supervisor due to an error, the Plan Administrator designee will duly advise the Plan Supervisor and follow up accordingly to ensure credit is properly applied to the City's claim submitted by the Plan Supervisor. In the event the City is unable resolve a claim discrepancy with the Plan Supervisor, the Plan Administrator designee will duly advise the Controller to reduce the claim submitted by the Plan Supervisor by the total of the discrepancy. (Ord. D-1048, § 3, 2-21-94)
(d) Self-insurance plan supervisor payments. All claims submitted by the Plan Supervisor shall be forwarded by the Controller to the financial institution (to be named by the Plan Supervisor and Plan Administrator) for direct deposit into the special checking account set up by the Administrator to maintain the $100,000 for payments of claims and administrative costs. The $100,000 represents an approximate three-month average of total claims and administrative costs for the Plan. This figure may be adjusted by the Plan Administrator as City growth dictates. (Ord. D-1048, § 4, 2-21-94)
(e) Utilization of excess funds. In the event the City Medical Escrow Fund, including all appropriations and any and all income earned thereon, exceeds costs and/or obligations of the City, then the excess shall be utilized as follows:
(1) First, to be placed or remain in reserve to prevent excess funding increases due to high claim years and medical coverage.
(2) Second, to provide additional benefits for the full- time employees, the exact details and provisions of which will be established by resolution adopted by the Plan Administrator from time to time.
(3) Third, to reduce the employer/employee benefit premiums. (Ord. D-1048, § 5, 2-21-94)
(f) Fund accounting. This fund shall be accounted for and maintained separate and apart from all other accounts and invested, if provided by law. (Ord. D-1048, § 6, 2-21-94)
(g) Fund duration. The life of the non-reverting fund shall be perpetual until terminated by subsequent ordinance duly enacted by the Common Council. (Ord. D-1048, § 7, 2-21-94)
(`91 Code, § 2-122) (Ord. D-2067-11, 11-7-11; Ord. D-2505-19, 12-16-19)